diff --git a/lib/Makefile b/lib/Makefile
index 5ab423f81..e00b7ff56 100644
--- a/lib/Makefile
+++ b/lib/Makefile
@@ -47,6 +47,7 @@ DIRS-$(CONFIG_OCF) += env_ocf
 DIRS-$(CONFIG_VHOST) += vhost
 DIRS-$(CONFIG_VIRTIO) += virtio
 DIRS-$(CONFIG_REDUCE) += reduce
+DIRS-$(CONFIG_VHOST_INTERNAL_LIB) += rte_vhost
 
 # If CONFIG_ENV is pointing at a directory in lib, build it.
 # Out-of-tree env implementations must be built separately by the user.
diff --git a/lib/vhost/rte_vhost/Makefile b/lib/rte_vhost/Makefile
similarity index 97%
rename from lib/vhost/rte_vhost/Makefile
rename to lib/rte_vhost/Makefile
index b0ae63358..ca7abb3a6 100644
--- a/lib/vhost/rte_vhost/Makefile
+++ b/lib/rte_vhost/Makefile
@@ -31,7 +31,7 @@
 #  OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
 #
 
-SPDK_ROOT_DIR := $(abspath $(CURDIR)/../../..)
+SPDK_ROOT_DIR := $(abspath $(CURDIR)/../..)
 include $(SPDK_ROOT_DIR)/mk/spdk.common.mk
 
 CFLAGS += -I.
diff --git a/lib/vhost/rte_vhost/fd_man.c b/lib/rte_vhost/fd_man.c
similarity index 100%
rename from lib/vhost/rte_vhost/fd_man.c
rename to lib/rte_vhost/fd_man.c
diff --git a/lib/vhost/rte_vhost/fd_man.h b/lib/rte_vhost/fd_man.h
similarity index 100%
rename from lib/vhost/rte_vhost/fd_man.h
rename to lib/rte_vhost/fd_man.h
diff --git a/lib/vhost/rte_vhost/rte_vhost.h b/lib/rte_vhost/rte_vhost.h
similarity index 100%
rename from lib/vhost/rte_vhost/rte_vhost.h
rename to lib/rte_vhost/rte_vhost.h
diff --git a/lib/vhost/rte_vhost/socket.c b/lib/rte_vhost/socket.c
similarity index 100%
rename from lib/vhost/rte_vhost/socket.c
rename to lib/rte_vhost/socket.c
diff --git a/lib/vhost/rte_vhost/vhost.c b/lib/rte_vhost/vhost.c
similarity index 100%
rename from lib/vhost/rte_vhost/vhost.c
rename to lib/rte_vhost/vhost.c
diff --git a/lib/vhost/rte_vhost/vhost.h b/lib/rte_vhost/vhost.h
similarity index 100%
rename from lib/vhost/rte_vhost/vhost.h
rename to lib/rte_vhost/vhost.h
diff --git a/lib/vhost/rte_vhost/vhost_user.c b/lib/rte_vhost/vhost_user.c
similarity index 100%
rename from lib/vhost/rte_vhost/vhost_user.c
rename to lib/rte_vhost/vhost_user.c
diff --git a/lib/vhost/rte_vhost/vhost_user.h b/lib/rte_vhost/vhost_user.h
similarity index 100%
rename from lib/vhost/rte_vhost/vhost_user.h
rename to lib/rte_vhost/vhost_user.h
diff --git a/lib/vhost/Makefile b/lib/vhost/Makefile
index 3d33cdb92..3d6edea95 100644
--- a/lib/vhost/Makefile
+++ b/lib/vhost/Makefile
@@ -41,8 +41,7 @@ C_SRCS = vhost.c vhost_rpc.c vhost_scsi.c vhost_blk.c rte_vhost_compat.c
 
 ifeq ($(CONFIG_VHOST_INTERNAL_LIB),y)
 C_SRCS += vhost_nvme.c
-DIRS-y += rte_vhost
-CFLAGS := -Irte_vhost $(CFLAGS)
+CFLAGS := -I../rte_vhost $(CFLAGS)
 endif
 
 LIBNAME = vhost
diff --git a/mk/spdk.lib_deps.mk b/mk/spdk.lib_deps.mk
index 6c8e827af..cd5970490 100644
--- a/mk/spdk.lib_deps.mk
+++ b/mk/spdk.lib_deps.mk
@@ -42,6 +42,7 @@ JSON_LIBS := json jsonrpc rpc
 
 DEPDIRS-env_ocf :=
 DEPDIRS-log :=
+DEPDIRS-rte_vhost :=
 
 DEPDIRS-ioat := log
 DEPDIRS-sock := log
@@ -77,7 +78,10 @@ DEPDIRS-nvmf := log sock util nvme thread $(JSON_LIBS) trace bdev
 DEPDIRS-scsi := log util thread $(JSON_LIBS) trace bdev
 
 DEPDIRS-iscsi := log sock util conf thread $(JSON_LIBS) trace event scsi
-DEPDIRS-vhost := log util conf thread $(JSON_LIBS) bdev event scsi
+DEPDIRS-vhost = log util conf thread $(JSON_LIBS) bdev event scsi
+ifeq ($(CONFIG_VHOST_INTERNAL_LIB),y)
+DEPDIRS-vhost += rte_vhost
+endif
 
 # ------------------------------------------------------------------------
 # Start module/ directory - This section extends the organizational pattern from
diff --git a/scripts/check_format.sh b/scripts/check_format.sh
index ad89a761a..fab5eb8d3 100755
--- a/scripts/check_format.sh
+++ b/scripts/check_format.sh
@@ -107,7 +107,7 @@ fi
 echo -n "Checking comment style..."
 
 git grep --line-number -e '/[*][^ *-]' -- '*.[ch]' > comment.log || true
-git grep --line-number -e '[^ ][*]/' -- '*.[ch]' ':!lib/vhost/rte_vhost*/*' >> comment.log || true
+git grep --line-number -e '[^ ][*]/' -- '*.[ch]' ':!lib/rte_vhost*/*' >> comment.log || true
 git grep --line-number -e '^[*]' -- '*.[ch]' >> comment.log || true
 git grep --line-number -e '\s//' -- '*.[ch]' >> comment.log || true
 git grep --line-number -e '^//' -- '*.[ch]' >> comment.log || true
@@ -147,7 +147,7 @@ rm -f whitespace.log
 
 echo -n "Checking for use of forbidden library functions..."
 
-git grep --line-number -w '\(atoi\|atol\|atoll\|strncpy\|strcpy\|strcat\|sprintf\|vsprintf\)' -- './*.c' ':!lib/vhost/rte_vhost*/**' > badfunc.log || true
+git grep --line-number -w '\(atoi\|atol\|atoll\|strncpy\|strcpy\|strcat\|sprintf\|vsprintf\)' -- './*.c' ':!lib/rte_vhost*/**' > badfunc.log || true
 if [ -s badfunc.log ]; then
 	echo " Forbidden library functions detected"
 	cat badfunc.log
@@ -182,7 +182,7 @@ fi
 rm -f eofnl.log
 
 echo -n "Checking for POSIX includes..."
-git grep -I -i -f scripts/posix.txt -- './*' ':!include/spdk/stdinc.h' ':!include/linux/**' ':!lib/vhost/rte_vhost*/**' ':!scripts/posix.txt' ':!*.patch' > scripts/posix.log || true
+git grep -I -i -f scripts/posix.txt -- './*' ':!include/spdk/stdinc.h' ':!include/linux/**' ':!lib/rte_vhost*/**' ':!scripts/posix.txt' ':!*.patch' > scripts/posix.log || true
 if [ -s scripts/posix.log ]; then
 	echo "POSIX includes detected. Please include spdk/stdinc.h instead."
 	cat scripts/posix.log
diff --git a/test/unit/lib/vhost/vhost.c/Makefile b/test/unit/lib/vhost/vhost.c/Makefile
index fd4f7b73e..23438ec4d 100644
--- a/test/unit/lib/vhost/vhost.c/Makefile
+++ b/test/unit/lib/vhost/vhost.c/Makefile
@@ -35,7 +35,7 @@ SPDK_ROOT_DIR := $(abspath $(CURDIR)/../../../../..)
 include $(SPDK_ROOT_DIR)/mk/config.mk
 
 ifeq ($(CONFIG_VHOST_INTERNAL_LIB),y)
-CFLAGS += -I$(SPDK_ROOT_DIR)/lib/vhost/rte_vhost
+CFLAGS += -I$(SPDK_ROOT_DIR)/lib/rte_vhost
 endif
 
 CFLAGS += $(ENV_CFLAGS)